As of June 30, 2024, the Company had $2.63 billion and $350.5 million in available for sale debt securities and held to maturity debt securities, respectively. The total number of available for sale and held to maturity debt securities in an unrealized loss position as of June 30, 2024 totaled 1,168, compared with 808 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was due to the addition of Lakeland securities, combined with higher current market interest rates compared to rates as of December 31, 2023.


	June 30, 2024
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	358,744	2	(23,715)	335,031
Government-agency obligations	164,690		1,672	(160)	166,202
Mortgage-backed securities	2,032,733		7,058	(190,607)	1,849,184
Asset-backed securities	52,470		807	(224)	53,053
State and municipal obligations	136,407		309	(10,158)	126,558
Corporate obligations	99,474		1,609	(4,328)	96,755

	$	2,844,518	11,457	(229,192)	2,626,783


	December 31, 2023
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	276,618	—	(22,740)	253,878
Government-agency obligations	26,310		1,188	—	27,498
Mortgage-backed securities	1,462,159		377	(176,927)	1,285,609
Asset-backed securities	31,809		594	(168)	32,235
State and municipal obligations	64,454		—	(7,870)	56,584
Corporate obligations	40,448		—	(6,140)	34,308

	$	1,901,798	2,159	(213,845)	1,690,112

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $9.2 million and $4.9 million as of June 30, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of June 30, 2024, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2024
	Amortized cost		Fair value
Due in one year or less	$	56,503	57,494
Due after one year through five years	361,811		337,043
Due after five years through ten years	115,803		112,705
Due after ten years	110,821		102,936
	$	644,938	610,178

Investments which pay principal on a periodic basis totaling $2.20 billion at amortized cost and $2.02 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three and six months ended June 30, 2024, proceeds from sales on securities in the available for sale debt securities portfolio totaled $568.4 million, with no gains and $3.0 million of losses recognized. For the three and six months ended June 30, 2023, there were no sales of securities from the available for sale debt securities portfolio. For the three and six months ended June 30, 2024 and 2023, there were no proceeds from calls on securities in the available for sale debt securities portfolio.

The number of available for sale debt securities in an unrealized loss position as of June 30, 2024 totaled 620, compared with 436 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was primarily due to the addition of Lakeland, combined with higher current market interest rates compared to rates as of December 31, 2023. All securities in an unrealized loss position were investment grade as of June 30, 2024.

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $15,000 and $31,000, as of June 30, 2024 and December 31, 2023, respectively (in thousands):


	June 30, 2024
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Treasury obligations	$	6,984	—	—	6,984
Government-agency obligations	9,998		—	(550)	9,448

State and municipal obligations	327,006		694	(17,671)	310,029
Corporate obligations	6,556		—	(326)	6,230
	$	350,544	694	(18,547)	332,691


	December 31, 2023
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Treasury obligations	$	5,146	1	—	5,147
Government-agency obligations	11,058		—	(652)	10,406

State and municipal obligations	339,816		244	(9,700)	330,360
Corporate obligations	7,091		—	(403)	6,688
	$	363,111	245	(10,755)	352,601

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $3.0 million and $3.1 million as of June 30, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2024 and 2023. For the three and six months ended June 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $1.2 million and $2.4 million, respectively. As to these calls on securities, for the three months ended June 30, 2024, there were no gross gains or gross losses, while for the six months ended June 30, 2024, there were no gross gains, while gross losses totaled $1,200. For the three and six months ended June 30, 2023, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $3.5 million and $6.6 million, respectively. As to these calls on securities, for the three months ended June 30, 2023, gross gains totaled $28,000, with no gross losses, while for the six months ended June 30, 2023, gross gains totaled $24,000, with no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio by contractual maturity, excluding an allowance for credit losses of $15,000, as of June 30, 2024 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2024
	Amortized cost		Fair value
Due in one year or less	$	39,389	39,125
Due after one year through five years	180,001		174,525
Due after five years through ten years	107,966		100,776
Due after ten years	23,188		18,265
	$	350,544	332,691

The number of held to maturity debt securities in an unrealized loss position as of June 30, 2024 totaled 548, compared with 372 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of June 30, 2024, was due to higher current market interest rates compared to rates as of December 31, 2023.

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of June 30, 2024 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").


	June 30, 2024
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Treasury obligations	$	6,984	—	—	—	—	6,984
Government-agency obligations	9,998		—	—	—	—	9,998

State and municipal obligations	45,709		249,553	30,051	—	1,693	327,006
Corporate obligations	502		2,485	3,544		25	6,556
	$	63,193	252,038	33,595	—	1,718	350,544

	December 31, 2023
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total
Treasury obligations	$	5,146	—	—	—	—	5,146
Government-agency obligations	11,058		—	—	—	—	11,058

State and municipal obligations	43,749		156,438	137,231	—	2,398	339,816
Corporate obligations	504		2,510	4,052	—	25	7,091
	$	60,457	158,948	141,283	—	2,423	363,111

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of June 30, 2024, the held to maturity debt securities portfolio was comprised of 18% rated AAA, 72% rated AA, 10% rated A, and less than 1% either below an A rating or not rated by Moody’s or Standard and Poor’s. Securities not explicitly rated, such as U.S. government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.